ICE cotton gains as crude oil rises, but strong dollar caps growth

Yesterday, the ICE cotton March 2025 contract settled at 66.54 cents per pound (0.453 kg), up by 0.51 cents. The May contract also gained 49 points, closing at 67.71 cents. Other contracts were also traded in the green zone.

The US dollar index continued to rise, making cotton purchases more expensive for overseas buyers. However, an increase in crude oil prices provided support to the natural fibre. Stronger crude oil makes polyester, a man-made alternative fibre to cotton, more expensive.

Last week, the USDA Weekly Export Report showed strong performance, with weekly shipments reaching the highest level of the season. Market traders are focusing on demand trends, particularly from China and Turkiye.

CBOT soyabean, corn, and wheat futures traded at a loss as the latest tariff announcement worried grain traders.

Currently, ICE cotton for March 2025 is trading at 66.93 cents per pound (up 0.39 cent). Cash cotton is trading at 64.29 cents (up 1.16 cents), the May 2024 contract at 68.09 cents per pound (up 0.38 cent), the July 2025 contract at 69.22 cents (up 0.42 cent), the October 2025 contract at 69.45 cents (up 0.75 cent), and the December 2025 contract at 69.72 cents (up 0.35 cent). A few contracts remained at the level of the last closing, with no trading noted today.

ALCHEMPro News Desk (KUL)